Pennsylvania has an inheritance tax. When a resident dies,

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Pennsylvania has an inheritance tax. When a resident dies,

for a beneficiary to receive...

Pennsylvania has an inheritance tax. When a resident dies, for a beneficiary to receive funds from certain types of accounts (such as an IRA), an "inheritance tax waiver" must be requested using form REV-516.The form says it's for "stocks, bonds, & securities" but doesn't mention bank accounts.Is this form also needed for a "payable on death" checking or savings account with a bank?

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Customer reply replied 1 year ago

Thanks for your response. Here's another related issue.I’m putting together information for my family on steps to take after my death. I want to include information on how to deal with the inheritance tax.I’m planning to advise them to have the PA inheritance tax return prepared by a professional preparer.I’ve arranged my estate so no probate will not be needed, so family probably won’t be working with a probate lawyer.What would be good advice to give family about tax preparation?Will a general service like HR Block be able to prepare the inheritance tax return?Or should I advise going to a tax accountant, probate lawyer, or estate lawyer?Would one of these be a better choice than others?My family all live in Missouri.Will they be able to have the PA inheritance tax return prepared by a professional in Missouri?Or should I advise them to see someone in Pennsylvania who is familiar with PA tax requirements?I own a condo in Philadelphia they will need to sell that will pass to them via a living trust. The sales price of the condo must be entered on the tax return.They will need to come to Philadelphia to sign the sales papers. Would that be a good time for them to meet with a local professional to prepare the tax return?

Estate Lawyer: William Kenworthy,

replied 1 year ago

I would suggest that they contact a Philadelphia attorney specializing in real estate to handle the closing details. Such an attorney would also be qualified to prepare the inheritance tax return, or he would refer them to a tax preparer.

Judge Bill K. ret.

William Kenworthy

Category: Estate Law

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Customer reply replied 1 year ago

Thanks for your response. Rating is 5 stars.

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Estate Lawyer: William Kenworthy, replied 1 year ago · Answer 1

An ordinary bank account would be considered as a cash equivalent under the Pennsylvania inheritance tax law and should be reported on the inheritance tax return. However a bank account with a "payable on death" provision also should be reported on REV 516, since it is considered as a "security account held in beneficiary form." Inclusion of the account on REV 516 will permit the state to issue a notice that will permit the bank to proceed with the transfer of ownership.

It also should be noted that IRA accounts and 401k accounts receive different treatment. IRAs typically are not subject to inheritance tax, unless the decedent was considered disabled. For 401Ks, the same provision applies unless the owner of a plan could have accessed the plan during his lifetime, without penalty. For most plans, the right to access without penalty is not realized until retirement age is reached, usually 62 or 65 years of age. Who files the inheritance

Please remember to rate this answer, as the compensation program for experts depends upon compliance with that step. Incidentally, I am a member of the Pennsylvania bar.

Judge Bill K. ret.

Pennsylvania has an inheritance tax. When a resident dies,

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